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What’s in store for the UK property market for 2021 and beyond?

Joseph Robertson, CEO of Hidden Gem Investments discusses what is predicted for the UK property market, and its challenges and opportunities, both locally and nationwide.


Alex Mahon, CEO of Channel 4 recently posted “we are all suffering from pandemic fatigue,

in an extended vacuum wondering where our real lives went. It is hard to find much

enthusiasm for anything.” I couldn’t agree more. Usually, when I feel low, I would rely on

the mountains to humble me; there is a certain thrill and tranquillity that being amongst

them can provide. Just one day spent in this kind of positive environment can turbo charge

my enthusiasm, energy levels and productivity.


Last week I was invited to survey two development sites in Lancaster. Once work had

concluded, I took the opportunity to paddle board 12km down the River Lune which

provided a whole lot of ‘me time’ along with some breath-taking views.





When I began to change into my wetsuit by the side of the road the pre-start nerves began

to set in. Questioning the flow of the river and the air temperature, I had to trust my

intuition and commit to getting in the water. It proved to be totally safe; taking around 3.5

hours, the river gently assisted my strokes allowing me to completely relax and forget about

life’s current stresses.


In fact, I managed to zone out so much I lost count how many times I fell in! With a cold

head and hands my attention began to focus on a recurring question I’m asked daily.

What’s in store for the UK property market for 2021 and beyond?


Get your facts right


Well, let’s take a quick look at the data:


● Using the latest forecasts from Savills, JLL, Hamptons and Knight Frank, property

price predictions vary from remaining the same to a 4% increase in 2021. They all

predict that by Q4 2022, we should be back to where we were pre-pandemic

economically.

● Unemployment is predicted to reach 6% and again return to normal by the end of

2022.

● Bank base rates are predicted to remain incredibly low which has proven to stabilise

the UK property market ever since the last crash.

● The number of transactions projected will remain the same “ish” until 2022 where

there is predicted to be around 1.2 million transactions – 200,000 more than 2020.

According to Kate Faulkner, a leading UK property analyst, the effects of Covid-19 will affect

properties differently. “It’s all about individual properties on an individual street…that’s how

sensitive property prices are. Local knowledge is imperative – the devil is in the detail”.


A popular joke about a statistical ‘average’ involves the statistician who put his head in the

oven and his feet in the freezer saying “on average, I feel fine.”


Research locally


It will not be good enough to rely on nationwide, or even area-wide, property data. If you

are buying a property in 2021 you must carry out due diligence on the local area and speak

to reputable local agents.


I personally do not believe there will be a nationwide property crash in the UK. However, I

am confident there will be plenty of fantastic opportunities to take advantage of. Like Kate, I

don’t believe there will be a nationwide free-for-all of properties 30% lower than they were

last year, but there are definitely instances where we are achieving these types deals.


We can help


Allow us to broker a deal for you. We are in talks with developers daily, offering creative

solutions to unsold units such as bulk purchase options for our clients.


If you like the sound of stepping outside your comfort zone and doing a similar exercise as

mentioned above whilst spending a few hours talking about property, just let me know!


Although we can’t arrange one for the foreseeable, I’d love to put names to faces or get to

know like-minded people one day in the near future.


Contact us here for more information.

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